Earlier this month, Roy along with his wife were prevented from flying abroad on the basis of a preventive lookout circular (LOC).

NDTV promoter Prannoy Roy&nbsp | &nbspPhoto Credit:&nbspBCCL

New Delhi: The Central Bureau of Investigation (CBI) on Wednesday booked NDTV founder-promoter and senior journalist Prannoy Roy, his wife Radhika Roy and former CEO Vikramaditya Chandra and others in an alleged FDI violation case.

Earlier this month, Roy along with his wife were prevented from flying abroad on the basis of a preventive lookout circular (LOC). However, in a statement, NDTV had said Roy and his wife were stopped from travelling abroad on the basis of "a fake and wholly unsubstantiated corruption case initiated by the CBI" two years ago.

CBI has alleged that the company floated 32 subsidiaries in several tax haven countries to bring foreign funds to India through sham transactions.

Earlier this year market regulator the Securities and Exchange Board of India (SEBI) had barred the Roy couple and their holding firm from the capital markets for two years and also restrained them from holding any board or top management role at the company.

The senior journalist and his wife were also barred from holding a board or key managerial position at any other listed company for one year, for violation of various regulations by keeping minority shareholders in the dark about three loan agreements.

One such loan agreement was with ICICI Bank while the other two loans were taken from Vishvapradhan Commercial Private Ltd (VCPL). Worth mentioning here is that VCPL is a Delhi-based wholesale trading firm incorporated in 2008. Ownership of this company, which was with Reliance Industries earlier, changed to Nahata group, from which RIL had bought Infotel Broadband in 2010 to re-enter the telecom business.

Earlier last year, Sebi had ordered VCPL to make an open offer for NDTV Ltd for indirectly acquiring control of up to 52 per cent stake through a convertible loan of Rs 350 crore in 2009 'sourced' from a subsidiary of Reliance Industries Ltd.

In its latest 51-page order, the Securities and Exchange Board of India (Sebi) said all its directions, including debarment of RRPR, Prannoy Roy and Radhika Roy from buying, selling or otherwise dealing directly or indirectly in securities, or being associated with the securities market, will come into effect immediately. Their existing holdings, including mutual fund units, will remain frozen during the prohibition period, Sebi said.

Sebi said its probe began after receipt of complaints in 2017 from Quantum Securities Pvt Ltd, a shareholder of New Delhi Television Ltd (NDTV), about an alleged violation of rules by non-disclosure of material information to the shareholders about loan agreements with VCPL. The ICICI Bank loan had a clause wherein the three promoters of NDTV had undertaken not to permit any major corporate restructuring, merger etc. without the prior written approval of the lender.

Investigations found that another loan agreement was signed with VCPL for a loan of Rs 350 crore later, which did not carry any interest rate, to repay the ICICI Bank loan that had an interest rate of 19 per cent.

However, one of the terms of the new loan effectively gave VCPL control over the entire shareholding of RRPR Holdings. The agreement gave further significant powers to VCPL and it was significantly material and price-sensitive in nature, as per the order.

CBI books NDTV promoter Prannoy Roy, his wife Radhika Roy in FDI violation caseDescription:Earlier this month, Roy along with his wife were prevented from flying abroad on the basis of a preventive lookout circular (LOC).ET Now Digital